Asian stock markets surged on Wednesday on hopes that the US, the region’s biggest trading partner, would avoid a serious economic slowdown after the Federal Reserve slashed US interest rates by 50 basis points.

Hong Kong led the way with a 4 per cent jump, with the Hang Seng index breaking through the 25,000 barrier for the first time as local rates dropped in line with the Fed’s cut. Markets in Mumbai, Singapore, Seoul and Tokyo rose by more than 3 per cent. Indian shares also hit a lifetime high, with the benchmark index piercing 16,000.